This article on ET points out that while Mobile is actually growing in India, PC & Broadband penetration isn’t catching up to the trend. I am discussing any Data here but the reasons why this may be happening.
The Choice of Mobile Vs PC
This is the choice dilemma that customer face when they think of buying the one. Mobile was recently dominated by Nokia and then came the Sonys, LGs, Samsungs and others. But still the choice of a mobile is controlled as Mobile OEMs have been able to target their TGs well and the TGs themselves know what they need to buy. When people enter the shop, the price sensitive people have already made a decision that they are going to buy a mobile in X range. And when people who are not that price sensitive go to the shops; they are almost sure of what features they are going to go for.
On the other hand, PC buying experience is quite scattered – branded, assembled, after sales service, unlimited permutations and combinations of hardware, software licenses and the inability of the sales person to fix the choices for the customers.
Computer is not personal
In India every household item is social. The Mobile is the only item which qualifies to become the first personal, protected and private item of possession. It gives a great high to anyone to own such personal and private item; be it 1,000 bucks or 10,000 bucks. Most of the youngsters in the house still prefer to chat or browse through Cyber Cafes which offers much more private environment than the home.
The Upgrade Brigade
No matter how much money you push into marketing computers, there is no actual reason or incentive for the customers. Indians already spent too much of time in Office and Schools and when they are back home the internet consumption is limited to light browsing, emailing and chatting. The segment of gaming, multimedia and cpu intensive jobs is growing but anyways it won’t be a major share in the market.
But you easily get bored with your Mobile, 2megs to 5 megs camera is a good reason to upgrade, 2 GB to 8 GB is again a good memory jump. Other reason is that most of the people start with a low end mobile when they are in schools, they upgrade as they move in jobs, social stats or their usage. Mobile is also good for show off.
PC doesn’t get you any mileage in showing off, it sits quietly in one corner and won’t really increase it’s sex appeal by any internal fix.
The Gift Culture
In Indian families things pass from elders to young ones in the family. My first watch was of my brother, my first trainers were of my brothers, my first walkman was of my brother. So in India the first mobile at least for the young generation would be from someone in the family. You will see more youngsters with mobile phone powered by – gifts in the family, second hand market & cheap packages from operators.
India is also full of festivals, birthday celebrations, marriages and competitive exams. So if you can really lay the foundations right, there’s opportunity everywhere.
Parents in India always want to keep a vigil on their kids and mobile is the only way they can do this these days.
Mobile is NOT Use and Throw
Many Indians are still not used to this concept. They would keep on shifting their PC / Laptop purchase decision thinking it would fall more, they would get more later in the same price and so on. And for mobile for a same price they won’t think twice. Cos they know they can upgrade their mobile later through buyback offers, or they can give it to someone in the family but same is not true for a PC. PC becomes obsolete very quickly, there is no exiting buy back offers and it really makes no sense gifting it to someone in the family, who anyways is still using and sharing with you.
Mobile is really Useful – Across the Society
PC would be of no use to a paanwala or a small shopkeeper who can still very well maintain his books through traditional methods. With PC or without PC they are still doing a good business and would continue to keep doing so. Mobile on the other hand connects them with their families, customers and partners where ever they are. In India almost every other person has a one man enterprise and mobile powers that enterprise.
TV doesn’t compete with Mobile
But it does compete with PC & Internet. Indians love to read newspaper, love to watch TV with friends and family, they spend days in front of TV watching Cricket, they love watching the reality shows, they love watching the 100th re-run of a Sholay on TV – where does this leave time for Internet or any other thing on PC.
The Early Adoptors
Your grandma can become the early adoptor for a new saas bahu serial on TV but she cannot become the early adoptor or a prime user on PC, she still can receive a call on your phone by your distant cousin or she can ask you to scold someone on her behalf. But the same mass of people cannot participate in the PC and computing ecosystem. e
PC is not Maruti Suzuki
You can drive a car or have a chauffer to drive your car. Even if you don’t have a chauffer , but someone in the family knows driving you can still use the car to the maximum. The grandma I cited in the above example can ask you to pick and drop her from a temple. She is still a prime user of that car or the trip without owning or driving the car. The same is true for Mobile for such users, they need not own it or need not know how to use it but still can they put the thing to use.
Follow up post (Coming soon): Ideas to Increase PC penetration in India
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